The sharp upside retracement surfaces as retail frenzy around Shiba Inu hints at testing May peak levels.
Shiba Inu (SHIB) kickstarted its new weekly session in the green as it continued its bullish retracement move from the last week’s low of $0.00002058.
The SHIB price logged an intraday high of $0.00002907 on Oct. 11, netting over 40% returns from its ongoing rebound trend. In doing so, the Dogecoin-inspired meme cryptocurrency eyed an extended runup toward its technical resistance level near $0.00002978, as shown in the chart below.
Extended rally ahead?
The Shiba Inu chart also showed traders’ intention to accumulate SHIB tokens when its price tests the 20-4H exponential moving average (20-4H EMA; the green wave) as support.
For instance, the cryptocurrency crashed by over 40% on Thursday as Shiba Inu’s addresses worth 1M to 10M SHIB dumped over 31 billion tokens, the largest in six months, as per Santiment data. However, the price recovered as traders started accumulating SHIB tokens near the 20-4H EMA.
Additionally, Shiba Inu’s ongoing retracement took cues from a potential correlation between the 1M-10M SHIB address dump and its price. Santiment noted that the Shiba Inu price rebounds every time after SHIB millionaires dump their holdings, as shown in the chart below.
That shows micro traders’ intention to absorb massive selloffs.
Retail sentiment moons
The bullish retracement in the SHIB market coincided with a rising number of internet queries for the keyword “Shiba Inu,” as per Google Trends.
Web data shows a rise in the Shiba Inu trend in the United States on a 12-month interest timeframe, signaling a booming retail interest. At 92, the trend is closer to the peak popularity score of 100, last seen in the second week of May. It indicates that more internet users are looking for information on Shiba Inu.
Nevertheless, the internet queries for the keyword “how to buy Shiba Inu” came out to be only 18 in the same period. Nonetheless, compared to the previous week, the interest shot up by 260%.
Tale of two indicators
On a technical front, SHIB’s latest rebound move appears to have invalidated a bearish setup that Cointelegraph discussed in one of its previous coverages.
Specifically, the SHIB price broke bullish out of an otherwise bearish Descending Triangle pattern as it closed above the structure’s upper trendline with a rise in trading volume. While the breakout still awaits confirmation, it has boosted the prospects of bullish continuation.
The reason for an extended upside is a makeshift Bull Pennant, which typically sends the price higher by as much as the height of the previous upside move. In other words, SHIB’s breakout above its Bull Pennant pattern could send its price to $0.00004713.
Meanwhile, should the price slips back inside the pennant range, it would risk reactivating the Descending Triangle setup. In doing so, SHIB may eyes a correction toward $0.00002195, followed by a negative breakout move toward $0.00001000.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.